Page 45 - DMGT548_GLOBAL_HRM

Global HRM

Notes Without chasing the chimera of developing new drugs, Ranbaxy uses guerrilla skills. A
classic example: it synthesised cefaclor—a complex molecule patented by the $ 7.30 billion
Eli Lilly—through an alternative route, becoming the only company in the world to
develop a process for the product without infringing on the original patent. Alarmed, Eli
Lilly had no choice but to strike a joint venture with Ranbaxy to protect its turf, which
allowed the Indian company to access the transnational’s distribution network in the US.
And Ranbaxy has now perfected the art of developing drugs by setting up teams that work
on parallel processes for producing generic drugs.
Having consciously opted out of the mainstream drugs business, Ranbaxy has developed
competitive advantages in areas where most large companies are only marginally involved.
Applied in the developed markets, it is now targeting that focus will make Ranbaxy’s
prescription even more potent.
Questions
1. What strategies did Ranbaxy adopt to compete with global players?

2. What generic competitive strategies did Ranbaxy adopt to emerge as one of Asia’s
top pharmaceutical companies?
3. “Ranbaxy seems to be committed to its mission of becoming a research-based,
international pharmaceutical company”. Do you agree with this statement?
Substantiate your answer.

4. Does the company use leading-edge technology? How does the company develop
or acquire such technology? How strong are its research capabilities?

Source: P.L. Rao, International Human Resource Management, First Edition, Excel Books, New Delhi,
2008.

2.5 Summary

 Culture plays a very important role in the success or the failure of the international
assignments.
 Culture varies across different nations due to varied beliefs of the people.
 There are various societies that are being formed based on the cross-cultural beliefs.

 In collectivistic societies, people are born into and protected by extended families, to
which they give loyalty.
 In individualist societies, people look after themselves and the immediate nuclear family.

 In a masculine society, values are based on material success, money and possessions. Men
are expected to be assertive and ambitious, and women tender and concerned with
relationships.
 The ‘feminine’ society has values of caring for others and preservation rather than progress.
People and good relationships are more important than money and things.

2.6 Keywords

Culture: It is a set of the set of shared attitudes, values, goals, and practices that characterises an
institution, organisation or group.
Collectivism: It measures the degree to which social bonds are formed between the individuals.

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